The Gem and Jewellery Export Promotion Council organized a Webinar on “ RoDTEP – Benefits, Challenges and the Way Forward “ in collaboration with Lakshmikumaran & Sridharan (L & S) on Monday, 30th August 2021. Considering the present need of the industry for Remission of duties and Taxes on exported Products Scheme (RoDTEP) expert speakers Mr. Ratan Jain, Partner and Mr. Saurabh Malpani, Principal Associate were invited to brief on the subject.
The webinar was moderated by Shri. Sabyasachi Ray, Executive Director, GJEPC, and was attended by more than 85 participants. 
The attendees were briefed on below mentioned topics of RoDTEP scheme :
•    Overview of RoDTEP scheme
•    Eligibility to claim benefits under RoDTEP Scheme
•    E- Scrips issued under the RoDTEP Scheme
•    Process for claiming Scrips
•    Procedure for Transfer of Scrips
•    Potential issues related to the scheme
•    Q & A session.

Attendees were apprised about the MEIS scheme introduced under Foreign Trade Policy 2015-20 to provide rewards to offset infrastructural inefficiencies and associated costs is not serving the purpose since it is Non-WTO compliant. MEIS scheme ended on 31.12.2020.
Ministry of Finance introduced “Remission of duties and Taxes on exported Products Scheme (RoDTEP) “dated 14th September 2019. The scheme is part of Chapter 4 of the FTP which covers duty remission schemes.

Attendees were further briefed on the below mentioned duties and taxes currently not reimbursed or refunded (on exports):
•    VAT and Excise on fuel used in transportation of inputs
•    VAT on fuel used in generation of captive power
•    Vat on fuel used in farm sector
•    Mandi Tax
•    Duty on electricity charges
•    Stamp duty
•    GST on inputs used in production of agriculture products
•    GST and compensation cess on coal used in production of electricity
•    GST on inputs of transport sector
•    GST on procurements from unregistered suppliers
Rates under RoDTEP /MEIS /Duty Drawback of Gems and Jewellery Commodities like Pearls, Diamonds, Platinum, Silver Precious, Semi-Precious, Synthetic and other Jewellery products were explained.

Attendees were also explained the eligibility to Claim Benefits Under the Rodtep Scheme:
Eligibility details to claim the benefits under the RoDTEP Scheme were explained stating every exporter exporting manufactured items covered under Appendix 4R will be eligible to avail the benefits of RoDTEP Scheme.

Attendees were also explained who are not eligible to Claim Benefits Under the Rodtep Scheme as mentioned below:
•    Exports of imported goods as per para 2.46 of FTP;
•    Exports through transhipments, meaning exports originating in third country but transhipped through India;
•    Export products subject to minimum export price or export duty;
•    Products restricted and prohibited for exports under Schedule 2 of Export Policy in ITC (HS);
•    Deemed Exports;
•    Supplies of products manufactured by DTA units to SEZ/FTWZ units
•    Supplies of goods manufactured by DTA but exported through SEZ/FTWZ unit – Ashwini Ashish Dighe vs. Union of India & Ors., 2019 (8) TMI 1006 – BOMBAY HIGH COURT
•    Exports of imported goods as per para 2.46 of FTP;
•    Exports through transhipments, meaning exports originating in third country but transhipped through India;
•    Export products subject to minimum export price or export duty;
•    Products restricted and prohibited for exports under Schedule 2 of Export Policy in ITC (HS);
•    Deemed Exports;
•    Supplies of products manufactured by DTA units to SEZ/FTWZ units
•    Supplies of goods manufactured by DTA but exported through SEZ/FTWZ unit – Ashwini Ashish Dighe vs. Union of India & Ors., 2019 (8) TMI 1006 – BOMBAY HIGH COURT
It was stated that Council can represent to government on obtaining clarity on applicability of RoDTEP benefits to below mentioned schemes.
•    Advance Procurement / Replenishment of Precious Metals from Nominated Agencies;
•    Replenishment Authorisation for Gems;
•    Replenishment Authorisation for Consumables;
As per para 4.55A of the FTP, Central Government has power to modify any of the categories for inclusion or exclusion under the Scheme.
Attendees were explained about E-scrips issued under the RoDTEP Scheme:
E-scrips issued under the RoDTEP Scheme and process for claiming scrips were explained.
With regards to E-scrips issued under the RoDTEP Scheme rebate amount will be issued in the form of a transferable duty credit / electronic scrip (e-scrip).
•    Such e-scrips will be maintained in an electronic ledger at ICEGATE.
•    Users can generate scrips for amounts as per their choice, which can be utilised or transferred electronically.
•    Transaction details of each scrip available in users credit ledger account on ICEGATE.

Issues regarding transfer of e-scrip were explained:
•    GST payable on such transfer of e-scrips?
•    In cases where after transfer of e-scrip issues like undervaluation, overvaluation, inadvertent errors arise, how the same will be dealt?
•    Whether e-scrips obtained for exports made via EDI port can be transferred for utilization at non- EDI ports?
Potential Issues with the scheme were also explained:
•    Whether the rates notified adequately cover the incidence of unrefunded taxes and duties borne on the export products? Whether the facility of Brand Rate would be available under the scheme like in Duty Drawback scheme?
•    Whether duty drawback would also be available in addition to the remission provided under RoDTEP Scheme in absence of any specific bar in the aforesaid Notification?
•    Whether the benefit to Advance Authorisation, 100% EOUs and SEZ / FTWZ units will be effective retrospectively or prospectively?
•    What happens in case an exporter has not indicated the intent of claim on the exports made in the past? 
•    Whether an exporter would be eligible if he is already claiming benefit of unrefunded taxes/duties/levies under any state specific scheme?
•    Whether additional RoDTEP benefit will be granted in case of increase in the FOB value of the goods subsequent to export? Supplementary claims?
•    Whether interest would be available on the past eligible exports in terms of Appendix 4R made post 01.01.2021?
•    Whether government can change the RoDTEP rates within the same financial year?
•    Whether the scheme would work like Drawback Model (without any separate application) or MEIS Model (with separate application)?